Knowing Foreclosure Laws

Judicial and Non-Judicial Foreclosures

One of the biggest differenced in state foreclosure laws is whether or not the process is overseen by the local court system or authorities. These are referred to as judicial foreclosures. Some states allow mortgages to contain a provision known as a Power of Sale clause, and this enables the lender to pursue a non-judicial foreclosure. Make sure you understand the differences between each. Generally, the judicial process may require more red tape, but that doesn't necessarily make it harder to buy a home. It's all about your preference.

The Pre-Foreclosure Period

Another big difference in local foreclosure law is the amount of time required between when a lender notifies a homeowner of a foreclosure and when the foreclosure sale takes place. In some states, like Texas and Georgia, this period can be as short as a few weeks, while in others, like New York, it can take up to a year. Researching foreclosure laws before beginning your search is always recommended.

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